Monetary, fiscal policy divide pose risks: NABE
foxbusiness.comFormer CKE Restaurants CEO Andy Puzder explains the importance of addressing the U.S. debt and the impact of wages on restaurant affordability.
Just as inflation eases and more economists bet on a soft landing for the U.S. economy, a new risk is emerging, a policy push and pull.
The divide between fiscal and monetary policy is increasingly worrying America’s most noted economists.
«Panelists are more optimistic about the outlook for the domestic economy,» added National Association of Business Economics (NABE) Policy Survey Chair Sam Khater, chief economist for Freddie Mac, «but they have increasing concerns on the balance of risks around monetary policy that is ‘too restrictive’ versus a fiscal policy that is ‘too stimulative’» the group noted in its February survey released Monday.
Fifty-seven percent believe current fiscal policy is «too stimulative,» up from 54% in August and has been steadily rising. Economists see reducing the deficit and debt as the two most important goals for promoting «medium-to-long-term growth.»
The national debt — which measures what the U.S. owes its creditors — increased to $34,228,699,143,453.34 as of Friday afternoon, according to the latest numbers published by the Treasury Department. By comparison, just four decades ago, the national debt hovered around $907 billion.
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Additionally, last week the nonpartisan Congressional Budget Office (CBO) predicted the debt held by the public will soon surpass the size of the U.S. economy and exceed a historical record in four years. Spending will likely be driven by Social Security and Medicare as
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